What fraud is associated with the manipulation of dormant accounts?

The manipulation of dormant accounts often leads to fraudulent activities where unauthorized individuals may access and transfer funds without the rightful account holder's consent. This can occur when fraudsters exploit the fact that these accounts are inactive, making them appear less monitored and hence more vulnerable to unauthorized activity.

When money is transferred to unauthorized accounts, it is primarily a form of account takeover or identity theft, where the fraudster uses personal information to gain access to the dormant account and executes transfers. These actions exploit weaknesses in financial institutions' monitoring systems, taking advantage of the fact that account inactivity might lead to reduced scrutiny.

Busying dormant accounts poses a particularly high risk because they are often overlooked by normal account holders, which gives criminals a window to execute their schemes with relative ease. Understanding this mechanism is crucial in recognizing potential fraud patterns related to dormant accounts, allowing investigators to better prevent and respond to such incidents.